The bill introduces several new tax credits aimed at bolstering the domestic manufacturing of critical medical supplies and drugs within the United States. These incentives are designed to reduce reliance on foreign supply chains and enhance national preparedness for health crises. One key provision establishes a Domestic Medical and Drug Manufacturing Credit , allowing taxpayers to claim 10.5 percent of their qualified manufacturing income, limited to 50 percent of W-2 wages attributable to domestic production. This credit applies to the manufacture of specified medical products, including essential medicines, biological products, critical devices, active pharmaceutical ingredients, and covered countermeasures identified on various government lists. The credit is effective for taxable years beginning after December 31, 2026. Furthermore, the bill creates an Advanced Medical Manufacturing Equipment Credit for machinery that incorporates novel technology or innovatively uses established techniques to produce specified medical products. This investment credit offers a 30 percent rate for equipment placed in service before 2031, phasing down to 0 percent by 2033. A third credit, the Medical Manufacturing EPA Compliance Credit , supports investments in property used to meet environmental standards under the Clean Air Act or Clean Water Act during the manufacturing of specified medical products. Similar to the advanced equipment credit, it starts at 30 percent before 2031 and phases out by 2033. To ensure accountability and track effectiveness, the bill mandates annual reports to Congress from several agencies. The Internal Revenue Service will report on credit utilization, while the Departments of Veterans Affairs and Defense will assess the credits' impact on compliance with the Buy American Act for medical procurements. The Food and Drug Administration will report on the credits' effect on drug and device shortages, with all reports commencing in calendar year 2027.